This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Magellan Chief Steps Down

Ahoy, investors, (FMAGX) Fidelity Magellan's captain is calling it quits.

The fund announced Monday the retirement of longtime portfolio manager Robert Stansky. According to Fidelity, veteran equity strategist Harry Lange will replace Stansky at the mammoth $52 billion fund.

A Fidelity representative said Stansky stepped down "to begin a new chapter in his life next year." Stansky has been at Fidelity for more than 22 years, including managing Magellan for nearly a decade.

It's been a rough decade for the fund giant under Stansky's watch. According to fund tracker Morningstar, the large-cap blend fund has returned 6.85% annually over the past decade, more than 2.6 percentage points below the S&P 500. Over the past five years, Magellan has lost investors at 2.85% per year, or 1.67 percentage points worse than the index.

Lange has been managing the (FDCAX) Fidelity Capital Appreciation Fund and the (FSCDX) Fidelity Advisor Small Cap Fund. The 10-year annual return for Fidelity Capital Appreciation during Lange's tenure has been 9.81%, just over 30 basis points better than the S&P Index, according to Morningstar.

Morningstar analyst Christine Benz calls the change in leadership "overdue." She says that while Lange is a "terrific manager," his "growth at a reasonable price" style of stock-picking may be a big change from Stansky's pure-growth management.

"I think the big open question is how well his style will translate into a much larger fund," says Benz.

The Magellan Fund -- which is closed to new investors -- began operations in 1963. Edward C. Johnson III, now Fidelity's chairman and CEO, was its first manager; it was managed by famed investor Peter Lynch with great success from 1977 to 1990.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs